Property insurance protects
your buildings and equipment, stock, furniture and fixtures. Some policies
include equipment breakdown and business income coverage. Basic property
insurance will generally cover your business for losses in the event
of a fire or lightning strike and will pay the cost of removing property
to protect it from further loss. Additionally, a standard small business
insurance policy will usually cover losses from windstorm, hail, explosion,
riot and civil commotion and damage caused by aircraft, automobiles or
vandalism.

Property insurance can be purchased on the basis of the property's actual value
(the replacement cost minus depreciation); its replacement value (the cost
of replacing the item without deducting for depreciation); or an agreed-upon
amount.

How does liability insurance coverage
protect my small business?Return
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There are many different types of third-party liabilities to be covered for
a business. Business liability insurance may protect you from claims arising
from someone's bodily or personal injuries. Other items that could be covered
are damage to the property of others, products-completed operations, advertising,
premises operations, fire, legal liability and related legal defense costs.
For instance, liability insurance will not only pay the cost of covered damages
but also the attorney fees and other costs associated with your defense.

What does the term "bodily injury" in
a liability insurance policy mean?Return
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This refers to the injury, sickness, disease, or even death, of any person
that occurs during the policy period.

What does "personal and advertising
injury" mean in general liability insurance coverage?Return
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Personal and advertising injury means being responsible for libel, slander
or any defamatory or disparaging material, or a publication or utterance in
violation of an individual's right of privacy; wrongful entry or eviction,
or other invasion of the right of private occupancy; false arrest, wrongful
detention, false imprisonment, or malicious prosecution; which occurs during
the policy period.

What's the difference between claims-made
coverage and prior acts coverage?Return
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While claims-made coverage applies to a claim which is made during the policy
period, priors acts coverage offers protection for wrongful acts that happened
before the inception date of an insurance policy...but have yet to become known.
For example, a buyer of E&O insurance may want to extend coverage for a period
of time prior to when the coverage becomes effective...just in case.

A policy designed to provide protection against catastrophic losses, the umbrella
insurance policy is generally written over various primary liability policies,
such as a general liability insurance policy, business auto policy and employers'
liability coverage. Once the underlying limits of these primary policies are
exhausted, the umbrella liability policy would provide further coverage beyond
the limits of those policies.

Workers' compensation pays for the rehabilitation, recovery and medical bills
of employees work-related injuries, as well as lost time when they are unable
to work because of a work-related injury. Workers' compensation is not a substitute
for health or medical insurance, since employees are only covered for on-the-job
injuries.

Almost all states are "open market", which means the coverage is
underwritten by private insurers; and some states are "closed" or "monopolistic" -
the coverage is underwritten by a state-sponsored fund (ND, OH, WA, WV, WY).
In states that are open, rates can vary between insurance carriers depending
on the type of business the carrier is attempting to attract. In an open market,
the rates for workers' compensation are competitive.

Workers' compensation pricing is based upon your employee payroll, the number
and job classification of the employees, classification of your business and
past loss experience. The employer pays for the cost of the workers' compensation.

Many personal auto insurance policies exclude coverage if a vehicle is used
mainly for business. A commercial auto policy provides coverage for autos owned
by a business if these vehicles are in an accident. The insurance pays to repair
or replace the vehicle and the vehicle of the third party damaged by the employee.
It also pays for the medical expenses of those injured in an accident.

Will my employees' personal cars be covered
under a commercial auto policy if they are using their cars for business?Return
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Most commercial auto insurance policies cover the liability for a business
if employees use their own cars for business, provided that the business owner
has purchased coverage for non-owned liability. Separate non-owned physical
damage coverage is available to cover actual damage to the auto. However, the
employees' personal auto policy would be the primary coverage for damage to
their automobiles.

Errors & omissions insurance provides coverage for people who give advice,
make educated recommendations, design solutions or represent the needs of others. "E&O" is
also referred to as professional liability or malpractice insurance. This type
of liability insurance would cover you and your employees in the event someone
claims you incorrectly performed or failed to perform your professional duties.

A BOP is a customized policy for small businesses that combines property insurance
and liability insurance in one policy, and generally includes additional coverages
at little or no additional premium. So it allows you to have broad coverage
at affordable premiums. Most insurance carriers have customized BOPs for particular
industries and services.

Even if you have a BOP, though, most small business owners should consider
adding coverage for conditions that might not otherwise be covered. Additional
coverages tailored to your industry are often available, such as temperature
changes, equipment breakdown, or computer equipment failure.

This insurance may reimburse you for the net income that would have been earned
if, for example, a fire or other covered causes of loss had not occurred. Losses
due to down time or extra expenses needed to restore operations (such as additional
property rental) also may be covered.

Employment practices liability insurance (EPLI)is designed to protect employers
against claims of employee sexual harassment, discrimination, wrongful termination
and other employment-related litigation. Many insurance companies offer employment
practices liability insurance as part of their business owners' policy or as
a stand-alone policy.

What is inland marine insurance? Why do I
need it for my business? Return
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Despite its misleading name, inland marine is a broad type of insurance which
covers articles that may be transported from place to place as well as via
bridges and tunnels. Specifically, this type of insurance protects a wide range
of high risk, mobile items, including: specialized contractor's tools and equipment,
electronic data processing systems, from mainframe computers to laptops, fine
art objects and jewelry.